CALSEIA: Proposed Decision on Residential Rates

Special Update: Proposed Decision on Residential Rates

Yesterday afternoon the CPUC released its proposed decision on changes to residential rate structure. This is the big rate case stemming from AB 327 to restructure residential rates for all three IOUs.

The biggest news is that they said there will be no fixed charge for the next five years. They actually said there should be a fixed charge, but since customers hate fixed charges they are not going to implement one during the transition to the new rate structure.

The main thrust of the new rate structure is flatter tiers. On this, they sided with the utilities by agreeing to go down to two tiers with only a 20% differential between the tiers. They are largely abandoning California’s tiered rate structure. However, they agreed with us that the transition should happen more slowly than the utilities proposed. The number of tiers and the differential between the tiers will be reduced gradually between 2015 and 2019.

So, score one for us for no fixed charge, one for the utilities for going all the way to 20% on the differential, and another for us for pushing the transition out to 2019.

Below are what the actual rates will be in SCE territory if the average rate increases by four percent annually. PG&E rates should be very similar, and SDG&E rates will likely be somewhat higher. The new rates for 2015 are likely to take effect in July.

We are scrutinizing the 300-page proposed decision to see what recommendations to make before the decision is finalized next month. We will protest the 20% differential and probably push for extending the transition for another year to 2020.